2. Background

On March 15, 2005, SDG&E filed the instant application, seeking authorization to spend $50.3 million for pre-deployment costs for its proposed Advanced Metering Infrastructure (AMI) Project. The application also requested approval of SDG&E's proposed deployment plan, associated cost recovery proposal, and estimated its expected full deployment costs at $612 million. A supplement was filed March 30, 2005 reflecting SDG&E's expected revenue requirement.

On May 9, 2005, Assigned Commissioner Grueneich issued a ruling laying out her approach to the case and describing the two-phase process that she expected to employ. She required supplemental testimony by SDG&E, who complied on May 25, 2005. Office of Ratepayer Advocates (ORA), Utility Consumers' Action Network (UCAN), and Hunt Technologies, Inc. (Hunt) served testimony on June 6, 2005. SDG&E and California Consumer Empowerment Alliance (CCEA) served rebuttal testimony on June 10, 2005.

At the June 15, 2005 prehearing conference the parties indicated an interest in settling the issue of the amount of pre-deployment costs that should be approved by the Commission in advance of its decision on deployment of the proposed AMI Project. Because all parties were present, the Administrative Law Judge (ALJ) waived the requirement for a seven day notice of settlement conference found in Rule 51.1(b) and the parties convened a settlement conference upon the close of the prehearing conference. All other issues in the application remain open as part of the second phase of the proceeding. All parties agreed that it was not necessary to hold evidentiary hearings on the pre-deployment cost recovery issues, regardless of whether a settlement was reached.

On July 1, 2005, SDG&E, UCAN, ORA, CCEA, and Hunt (Joint Parties) filed a Motion to approve a multiparty settlement. On July 8, 2005, the Joint Parties filed draft tariff sheets to implement the settlement. By agreement of all parties, only one round of comments was taken, on July 15, 2005. Joint comments were filed by The Utility Reform Network (TURN) and the Coalition of California Utility Employees (CCUE) in opposition to the settlement.